9 Negotiation Tactics to Help Reduce Your Credit Card Debt


Millions of individuals around the world are drowning in debt. If you’re one of these people struggling with significant credit card debts, you may be able to negotiate your financial obligations with the credit card company.

Here are some negotiation tips on how to reduce your debts and get your finances back on track:

1. Call at a good time.
One of the simplest yet most effective negotiation tactics is to choose the right time to call a credit card company. Call first thing in the morning, as people are more likely to be pleasant and willing to help you out. If you call at the end of the day, people tend to be tired and cranky.

2. Let them know you will pay what you owe.
Credit card companies are extremely wary of people who try to get out of paying their debts. Make it clear that you intend to pay what you owe, but need a little help on their part. You may just be surprised at how understanding these companies can be!

3. Take advantage of your first time.
If this is the first time to request for a lower interest rate or have a late fee waived, be sure the credit card company knows this. These companies show a lot more leniency for first-time offenses as opposed to monthly requests for an extension.

4. Show them you are a loyal customer.
If you’ve been a long-time customer or a big spender for several years, use this to your advantage. By reminding a company of your loyalty, you’ll find that they will be more willing to renegotiate your credit card debt because they don’t want to lose your business.

5. Ask for a lower interest rate.
Unknown to many, credit card interest rates are often negotiable. If you have had a good payment history, you shouldn’t have any problems with requesting for a lower interest rate. Explain that you’ll be able to put more money towards paying off your principal balance instead of your interest rate charges.

6. Have late fees waived.
Late fees, like other fees, can easily be waived if you pay your bill within a few days of the due date. A solid credit history can be used as leverage, and may be well worth the effort to make that extra phone call.

7. Ask to miss a payment.
If you are experiencing a momentary financial setback but expect to get your finances in order in the near future, explain your situation to the credit card company and respectfully ask if you would be allowed to miss one or two payments. Take note, however, that these skipped payments may reflect negatively on your credit report.

8. Speak to the right person.
When it comes to negotiating tactics, it’s always best to speak to the right person. Your concerns will likely be handed to a customer service representative, but request that you speak directly to the manager or another individual who has the authority to make decisions. Remember to write down the names, designations, and contact details of everyone you speak with, as well as the time, day, and particulars of your conversation.

9. Write it down.
Verbal agreements may only lead to misunderstandings in the future. One of the most common bargaining tips from experts is to get your new terms in writing, and request that both parties be given a copy of this new agreement. Ensure that this document states information such as what amounts will be paid, when these will be paid, and if these payments will satisfy the obligation fully.

Good Luck

Geneva Education

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